Poland increases audits of foreign accounts and crypto assets

Polish tax authorities are increasing inspections of citizens' foreign bank accounts, with a specific focus on cryptocurrency transactions. Using the Common Reporting Standard (CRS) for automatic information exchange, officials are gaining access to data regarding account balances, interest, and dividends held abroad.

Authorities are currently prioritizing audits related to the 2021 tax year, specifically targeting capital gains from virtual currencies. Under the upcoming EU DAC8 directive, cryptocurrency service providers will also be required to automatically exchange client transaction data with tax administrations. If taxpayers cannot prove the legal origin of their funds, they may face additional tax liabilities at a rate of 75 percent.